Do I Qualify for the Canada Emergency Response Benefit & EI?

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To help Canadians through this difficult time, the Federal Government created the Canada Emergency Response Benefit (CERB) and made changes to the Employment Insurance Program (EI). For those whose employment has affected by the Coronavirus, we have created a chart to help you figure out which program you qualify for and provide links to apply for each program.

The Federal Government has already made numerous changes to these programs so we will be updating this document whenever a change to the program is made.

Stay home and stay safe.

Help for Small/Medium Businesses & Entrepreneurs – 75% wage subsidy, $40,000 interest-free loan & more

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March 27, 2019 – Prime Minister Justin Trudeau announced programs and measures focused on helping Small & Medium Sized Businesses and Entrepreneurs cope with the economic consequences caused by the COVID-19 pandemic.

“With these new measures, our hope is that employers being pushed to laying off people due to COVID-19 will think again,” Trudeau said. “And for those of you who have already had to lay off workers, we hope you will re-hire them.”

Wage Subsidy increased to 75%

The Prime Minister has been under pressure from the small business community to boost the wage subsidy beyond the 10% initially announced to help keep people employed. Today, Mr. Trudeau announced the government will increase the wage subsidy from 10% to 75% to help keep employees on the payroll. This increase will be backdated to Sunday, March 15th.

“It is clear we have to do more, much more so we are bringing that percentage up to 75 per cent for qualifying businesses”

– Prime Minister Justin Trudeau

Canada Emergency Business Account (CEBA)

The CEBA will allow banks to offer $40,000 loans that will be interest-free for the 1st year which will be guaranteed by the government. If you meet certain conditions, $10,000 of the loan can be forgivable.

“To help you bridge to better times, we are launching the Canada Emergency Business Account. With this new measure banks will soon offer $40,000 which will be guaranteed by the government”

Defer GST, HST, Duty

The government will defer GST & HST payments, as well as duty and taxes owed on imports until June 2020.

“This is the equivalent of giving $30-billion of interest free loans to businesses”

Bank of Canada Rate Cut

Bank of Canada slashed its key overnight interest rate to 0.25%.

Full details and qualification requirements will be available on Monday.

Canada Emergency Response Benefit to help workers and businesses

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$2,000/month for 4 months – Canada Emergency Response Benefit to help workers and businesses

To support workers and help businesses keep their employees, the government has proposed legislation to establish the Canada Emergency Response Benefit (CERB). This taxable benefit would provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. The CERB would be a simpler and more accessible combination of the previously announced Emergency Care Benefit and Emergency Support Benefit.

The CERB would cover Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI).

Additionally, workers who are still employed, but are not receiving income because of disruptions to their work situation due to COVID-19, would also qualify for the CERB. This would help businesses keep their employees as they navigate these difficult times, while ensuring they preserve the ability to quickly resume operations as soon as it becomes possible.

The EI system was not designed to process the unprecedented high volume of applications received in the past week. Given this situation, all Canadians who have ceased working due to COVID-19, whether they are EI-eligible or not, would be able to receive the CERB to ensure they have timely access to the income support they need.

Canadians who are already receiving EI regular and sickness benefits as of today would continue to receive their benefits and should not apply to the CERB. If their EI benefits end before October 3, 2020, they could apply for the CERB once their EI benefits cease, if they are unable to return to work due to COVID-19. Canadians who have already applied for EI and whose application has not yet been processed would not need to reapply. Canadians who are eligible for EI regular and sickness benefits would still be able to access their normal EI benefits, if still unemployed, after the 16-week period covered by the CERB.

The portal for accessing the CERB would be available in early April.

Canadians would begin to receive their CERB payments within 10 days of application. The CERB would be paid every four weeks and be available from March 15, 2020 until October 3, 2020.

Canada Emergency Response Benefit

Coronavirus & Market Uncertainty- What you should do.

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Over the last week, the financial market has taken a downturn amidst fears over Coronavirus. The S&P 500 had its worst weekly drop since the financial crisis in 2008, after setting all-time highs the prior week.*

Understandably, investors are anxious about their money. If you are concerned with your portfolio, you’re not the only one, however during times of market volatility, it’s important to stay levelheaded to avoid making financial missteps.

Keep Calm

In situations like these, it’s important to keep perspective. This is not the first time the market has taken a downturn, market corrections are a natural part of the investment cycle and over long term, individuals that remain invested can use the volatility as an opportunity to buy will be rewarded.

The media can make it seem like each market downturn is worse than before. In reality though, volatility doesn’t hurt investors but if selling in a downturn, it will lock in losses.

Keep Up-to-Date

Currently, there isn’t enough information to know how the Coronavirus will affect the market, over the short, medium and long term however it’s important to know that the financial market doesn’t like uncertainty. Therefore, as further developments come to light, there will likely be a correction to the market.

How have markets reacted to virus outbreaks in the past?

The table and chart below, show how the S&P 500 has performed during similar virus outbreaks in the past. While the impact can be negative, the long-term impact has been limited. In all past scenarios markets were higher 12 months after the virus was identified.**

Source: Bloomberg Finance L.P., CitiResearch, FactSet. As at February 27, 2020. The starting date for the 12-month return is
the month each virus was identified.

Keep in mind your portfolio is diversified

We know market downturns can be stressful and being bombarded by media reports doesn’t help but keep in mind your portfolio is diversified It’s important to remember that your portfolio is tailored to your unique investment time horizon, personal situation and financial goals. If you do have questions about your portfolio, please don’t hesitate to contact us.

Review your investments

This is a good time to review all your investment accounts including your TFSA, RRSP or RRIF to ensure you are diversified. If you haven’t reviewed the accounts that we don’t manage, please reach out to our office and we can provide you with recommendations that align with your financial goals.

Keep in touch

We’re here for you and hope to serve you by helping you make objective and educated financial decisions. These decisions will help you stay the course so you can achieve your financial goals.

If you have friends or family that need help with their investments, we are happy to offer a complimentary review. We will discuss what their financial goals are and what makes the most sense for their situation. Often by working with a financial advisor, it can help them feel more confident about their finances.

At any time, should you wish to discuss or review your investments, please contact us. We’re here to support you.

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